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Tom McManus
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The Taming of Mobile: The Wild West of Advertising
When Mary Meeker's "2015 Internet Trends" presentation
came out in May 2015, slide 16 caught my attention.
A graph pointed out that mobile, based on
views, wasn't getting its fair share of
advertising dollars. There was a $25
billion gap. How could this be? How
could our industry leave so
much money on the table?
I decided to do research to figure out what
was going on. What I uncovered
was not only surprising,
it was disturbing.
My Research Sources
40%
of all digital ad spending
will be mobile in 2017
Source: ZenithOptimedia, “Advertising Expenditure Forecasts June 2015
$158 B
global mobile internet
ad spending by 2018
eMarketer Android vs. iOS: What Wins Where? FEBRUARY 19, 2015
4 Critical Challenges
1.Viewability
2.Privacy
3.Ad blockers
4.Fraud
View ability
56%
of all ads on the internet are not seen.
Advertising Age “56% of Digital Ads Served Are Never Seen, Says Google” December 03, 2014.
60.7%
of advertising professionals cite viewability as the biggest challenge to digital publishing
December 2014 study by The 614 Group and AdMonsters
1. In-view time
2. Scroll depth
3. Scroll velocity
Skimming (480 pixels/sec.)
Reading (48 pixels/sec)
4. AVOC (Audible and visible
on compete for video)
Digital viewability
1. Measurability
2. Accuracy
3. Operational friction
4. Pricing
Viewability challenges
1. Independent
2. 3rd party
3. Accurate
4. Accredited
Viewability measurement
MRC standards
A display ad is
considered viewable
when 50% of an
ad’s pixels are in
view on the screen
for a minimum of
one second.
Source: Google, "The Importance of Being Seen: Viewability Insights for Digital Marketers and Publishers" study, November 2014.
Designed by freepik.com
MRC Viewability definition is
challenged by our industry
0
7.5
15
22.5
30
25% 50% 75% 100%
13%
30%
26%
30%
Pixels in view for a minimum of 1 second
Pixels in view for a minimum of 1 second
Pixels in view for a minimum of 1 second
Pixels in view for a minimum of 1 second
Definition of a viewable desktop display ad that will be
adopted in 2015 according to US advertising Professionals
MRC
Source: SQAD, “Survey Questions for the 2015 ANA Conference,” June 2, 2015
Viewability on mobile will be crucial as
consumers spend more and more time
on their smartphones. But our industry
won't get there if we're still debating
the standard itself.
Think With Google “Toward Viewability: You Can’t Count What You Haven’t Measured” March 2015
“...mobile viewability measurement
guidelines have yet to be developed
by the industry.”
State of Viewability Transaction 2015 » Frequently Asked Questions - See more at: http://www.iab.net/viewability/faq#sthash.agIh6KyR.dpuf
Privacy
HACKED11 M
80 M
109 M
83 M110 M
SOURCES: BLOOMBERG NEWS, PRIVACY RIGHTS CLEARINGHOUSE, BREACH LEVEL INDEX
63% of US smartphone users
are concerned about their privacy
and security when they access
the internet.
Mobile Brings A Paradigm Shift To Privacy
Added: 07/05/2015 from FORRESTER RESEARCH Published: 06/10/2015
60% of U.S. consumers are
concerned that mobile payments
could jeopardize their financial or
personal security
Security Concerns Over Mobile Payments May Give Banks Marketing Advantage with Current Customers
Added: 04/16/2012 from MARKET STRATEGIES Published: 02/15/2012
44% of US adults have opted out
of targeted advertising in order to
protect their online privacy.
Nearly Half of U.S. Adults Believe They Have Little To No Control Over Personal Info Companies Gather From Them While Online | Ipsos Added: 01/31/2013 from IPSOS Published: 01/24/2013
1. Simpler opt-in methods
2. Transparent opt-in methods
3. Adhere to consumer privacy agreements
4. Do not use “free” tech from vendors that share your data
What to do
eMarketer thinks privacy is not that big of a concern.
“Users may claim to be worried
about security, but their actions
speak louder than words.”
KEY DIGITAL TRENDS FOR 2015; WHAT’S IN STORE––AND NOT IN STORE–FOR THE COMING YEAR
© 2014 ALL RIGHTS RESERVED
eMarketer
Ad blockers
Google, Microsoft and Amazon were recently cited in news reports as companies making payments to Adblock Plus in order to bypass it.
–Ad Age
Advertising Age “Publishers Watch Closely as Adoption of Ad Blocking Tech Grows” February 13, 2015.
Millennials use ad blockers and they are the future.
Fraud
Humans account for
just 40.9% of web
traffic worldwide.
©2015 eMarketer Inc. All rights reserved. www.emarketer.com
“Here’ Where the Bots Are, and Aren’t, Lurking June 11, 2015
23%
36%
41%
Human Good Bot** Bad Bot*
Note: represents data measured by Distil Networks, broader industry metrics may vary; *machine-generated web traffic deployed to
purposefully inflate traffic counts; includes fraud, spam and web-scraping bots; **machine generated web traffic created as a byproduct of
software applications running necessary tasks such as web crawling or search indexing. Source: Distil Networks, *2015 Bad Bot Landscape
Report,” May 14, 2015 www.eMarketer.com
Web traffic worldwide
Good Bot:
Machine generated web traffic
created as a byproduct of
software applications running
necessary tasks such as web
crawling or search indexing.
Source: Distil Networks, *2015 Bad Bot Landscape Report,”
May 14, 2015 www.eMarketer.com
©2015 eMarketer Inc. All rights reserved. www.emarketer.com
“Here’ Where the Bots Are, and Aren’t, Lurking June 11, 2015
Machine-generated web traffic
deployed to purposefully inflate
traffic counts; includes fraud,
spam and web-scraping bots.
Bad Bot:
©2015 eMarketer Inc. All rights reserved. www.emarketer.com
“Here’ Where the Bots Are, and Aren’t, Lurking June 11, 2015
Bad Bots wreaked the most havoc on digital publishing sites, at nearly one-third of traffic, or about two-thirds of all traffic
from bots in the industry.
$14 million through clickjacking and ad replacement fraud
©2015 eMarketer Inc. All rights reserved. www.emarketer.com
“Here’ Where the Bots Are, and Aren’t, Lurking” June 11, 2015
Nearly 6 in 10 of respondents cited
fraud as a top hurdle to buying
ads programmatically.
Global in-app purchase fraud rate—the
number of virtual goods downloads that
take place without revenue changing
hands—was huge, at 7.49.
eMarketer “The Rising Tide of In-App Fraud” JULY 15, 2015
The study found that global click-to-install fraud rate—the incidence of fraudulent or abnormal numbers of clicks per download, compared with a norm—was 2.57, meaning that for every click that resulted in a legitimate install, there were 2.57 unexplained clicks.
©2015 eMarketer Inc. All rights reserved. www.emarketer.com
“Desktop Vs Mobile: Where’s Programmatic Marketplace Quality a Bigger Issue?” June 23, 2015
We must take responsibility for
programatic marketplace quality.
Governing and trade bodies
should take part. eMarketer
Looking ahead
Apple is showing the way with their
own solution for mobile advertising
challenges.
The App Store is
a walled garden.
Apple is introducing its own
Ad Blocker for Safari
Restricts advertising
on the mobile web.
Apple’s ecosystem allows
complete control over the
quality of mobile inventory.
Benefits of App Store
1. Single standard for analytics
2. Prevents fraud
3. Controls ad blockers
4. No waiting for consensus on viewability standards
5. Ad production is simplified
6. Integrates measurement tech into ad serving
App Store threats
1. Smaller inventory base
2. Inventory cost increases
3. Need independent regulatory body
4. Lack of transparency
5. Doesn’t solve Android mobile challenges
6. Centralized control over inventory
MobileFirst It is no longer the website.
Watch platforms that are
succeeding in mobile media.
Facebook gets mobile
1. Larger user base
2. Better attention capture
3. More data for targeting consumers
4. In app advertising
5. Ads are not disruptive
6. Format innovation
Watch advertisers who have consumers who are Millennials.
Desktop is to mobile
what print was to web
MobileFirst
Desktop Mobile
Mature Adolescent
Browser Apps
WiFi Data Networks
Horizontal Vertical
Links Buttons
Large canvas Small canvas
No phone integration Phone integration
Page view Infinite scroll
Branding App downloads
Display Native display
Concept ads Commerce ads
MobileFirst
Marketers will buy audiences
and specific moments, not
media channels
MobileFirst
Internet of things is now
internet of me
MobileFirst
Focus on a seamless
mobile experience.
MobileFirst
Programmatic advertising
(marketing by algorithm)
MobileFirst
Social commerce will get a
boost from the buy button.
MobileFirst
Mobile video is the
next big thing.
MobileFirst
Location is the new cookie.
MobileFirst
Content creation balanced
with content amplification
MobileFirst
Social TV isn’t happening.
MobileFirst
Cross-Device targeting at scale.
MobileFirst
Our “To Do” list
Viewability standards for mobile
Multiple viewability vendors
Come to consensus on standards
Resolve discrepancies in measurement
Integrate measurement tech into ad serving
Monitoring and Accountability programs
Industry “To Do” list
